The difference between supply and demand in real estate is as follows:
You cannot fill a real estate supply shortage by manufacturing more identical units. Each piece is different and there is a finite supply. It's not a manufactured commodity. Though you might be able to create more condos in a give space, the space itself is unique and cannot grow to accomodate a short supply.
Real Estate Cannot be Moved to Fill Shortages:If there is a shortage of land for homes in a given area, you cannot move in more land to alleviate the shortage. Real estate is where it sits. For this reason, it will always be a local commodity influenced by local conditions. Over-supply Means Lower Prices:Because of the first two items above, you can usually expect there to be a fall in prices when there is an over-supply of homes or land in a given area. You cannot move the overage to another area to keep prices stable. Under-supply Means Higher Prices:If there isn't enough land or homes in a given area, then prices will almost always rise. Even if there is the ability to construct more homes, the time delay cannotYou can read more about it in detail here - http://www.globalfinanceschool.com/interactive-courses/demand-and-supply
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Supply is the amount produced and demand is the amount that is wanted.
The (market) prices affect supply and demand, not the other way around except if the supply and demand you're talking about are caused in another market than real estate.
The supply side deals with relationship between the price and the quantity. The demand side deals with the volumes that buyers are willing to purchase at various prices
Because of forex market and demand & supply
THE ANSWER IS IN YOUR BRAIN ! you people are reaaly dumb
if the supply is low and the demand is high, then the price of the good will be high. if there is high supply but low demand, then the price will be low. the price of a good or service is determined by the relationship between supply and demand. look for any basic macro or micro economics books and it should give you a very good explanation on the subject also pay attention to the graphs of supply and demand and you will get a better understanding of the relationship between supply and demand.
demand = how much people want it quantity (supply) = how much you have/can sell When the demand drops, the supply increases, and when the supply increases, the demand drops, but it will turn around again, and when the supply is low, the demand increases, and when the demand increases, and the supply gets lower.
Its the difference between the demand price and the supply price at the quota limit .
Excess demand (a seller's market) means the product is in short supply and prices will rise. Excess supply (buyer's market) means too much product as compared to demand and therefore prices will fall.
Location Location Location...then supply and demand.
The state in which real estate market supply and demand balance each other and, as a result, prices become stable. Generally, when there is too much supply for goods or services, the price goes down, which results in higher demand. The balancing effect of supply and demand results in a state of equilibrium.
When there is more supply than demand, there is commonly a drop in price of the product in an effort to increase the demand and achieve the equilibrium between supply and demand once again. Supply and demand are like a see-saw. As supply goes down, demand goes up; as demand goes up, supply goes down.